logo

New developments in cryptoasset advertising

LetsLaw / Digital Law  / New developments in cryptoasset advertising
cryptoasset advertising

New developments in cryptoasset advertising

Cryptoasset advertising has undergone significant changes in recent years, with the aim of protecting investors and ensuring greater transparency in this emerging market. The National Securities Market Commission (CNMV) has played a crucial role in regulating these advertising campaigns, establishing clear guidelines on the information to be provided to consumers. 

These modifications seek to balance and limit the promotion of cryptoassets with the need to avoid misleading advertising and excessive risks for investors.

Implementation of the MiCA regulation

Regulation (EU) 2023/1114, known as MiCA (Markets in Crypto-Assets), introduces a regulatory framework for cryptoasset markets in the European Union. This regulation has a significant impact on crypto-asset advertising.

Among the most significant new features, the following stand out:

  • Cryptoasset advertising must be clear, fair and not misleading. The information provided must be accurate and balanced, presenting both the benefits and risks associated with investing in cryptoassets.
  • Advertising must clearly identify the entity responsible for offering cryptoassets or providing related services.
  • It is mandatory to include clear and prominent warnings about the risks of investing in cryptoassets, including the possibility of total loss of the invested capital.
  • The regulation prohibits advertising that may mislead investors, including exaggerated claims about the profitability or safety of cryptoassets.
  • The competent national authorities will monitor compliance with these advertising rules and may impose sanctions in case of non-compliance.
  • MiCA applies to all cryptoasset service providers operating in the EU, regardless of their physical location.

Repeal of Circular 1/2022

Circular 1/2022 established a series of general criteria and principles to be complied with by cryptoasset advertising campaigns, including:

  • Advertising had to be clear, balanced and not misleading.
  • It was mandatory to include warnings about the risks of investing in cryptoassets.
  • Advertising had to clearly identify the responsible entity.
  • Any advertising that could mislead investors was prohibited.

However, Circular 1/2022 was repealed mainly due to the need to adapt Spanish regulations to the new European regulatory framework established by Regulation (EU) 2023/1114 (MiCA), relating to cryptoasset markets.

New Circular 1/2024

The main purpose of Circular 1/2024, dated December 17, issued by the National Securities Market Commission (CNMV), is to repeal Circular 1/2022, dated January 10, which regulated the advertising of crypto-assets presented as investment objects. Unlike Circular 1/2022, Circular 1/2024 does not establish a new detailed regulatory framework on the advertising of crypto-assets, but its main function is to eliminate the previous regulation to give way to the direct application of the MiCA Regulation.

In this regard, the CNMV considers that Circular 1/2022 is no longer necessary, as the MiCA Regulation regulates in a more complete and detailed manner the advertising of cryptoassets.

Accordingly, cryptoasset service providers and issuers must now comply with the advertising provisions of the MiCA Regulation.

Contact Us

    By clicking on "Send" you accept our Privacy Policy - + Info

    I agree to receive outlined commercial communications from LETSLAW, S.L. in accordance with the provisions of our Privacy Policy - + Info